Power Hour: Be Ready for a Summer Price Rally

With corn planting so far behind this year, corn yields may be reduced. Farm Journal economist Bob Utterback believes the chance is extremely likely. "This is not going to be a spectacular year for yields."

As of this week, only 12% of the U.S. corn crop is planted. That is significantly behind the five-year average of 47% planted by May 5. (See AgWeb’s interactive corn planting map.)

The potential of reduced yields could create some unstable prices. Utterback says now is the time for farmers to prepare and put positions in place.

He also suggests that farmers are aware of when a rally is most likely to happen. "The real rally for corn prices is not with planting delays but summer weather scares," he says. "One has to be a seller of the market during these rallies. Don’t fall back and think crop insurance is your marketing plan for 2013."